Cost Decline, Phthalic Anhydride Prices Experience Fluctuating Drop

August 8th News

This week, the phthalic anhydride market in China fluctuated and declined.

According to the commodity market analysis system, as of August 8, the price of o-phthalic anhydride in China was 6,550 CNY/ton, a decrease of 1.50% from the price of 6,650 CNY/ton on August 1. In August, the price of o-xylene and industrial naphthalene fluctuated downward, increasing the downward pressure on o-phthalic anhydride prices. The operating load of o-phthalic anhydride equipment in China decreased, and the operating rate of o-phthalic anhydride enterprises slightly declined, with ample supply. The market for downstream plasticizers fluctuated downward, but the operating load of plasticizer enterprises increased, leading to greater support for the demand for o-phthalic anhydride. With reduced supply and recovering demand, coupled with a decrease in costs, the price of o-phthalic anhydride in China fluctuated downward this week.

Phthalic anhydride costs decrease with ample supply in China

As of August 8, Sinopec's orthoxylene (C8H10) quotation was 6,600 CNY/ton, down from 6,800 CNY/ton at the beginning of the month, representing a price decrease of 2.86%. Industrial naphthalene prices have stabilized with fluctuations, while orthoxylene prices have declined. With the cost of phthalic anhydride (PA) decreasing, downward pressure on PA prices has increased. As a result, phthalic anhydride prices have fallen, with quotations ranging from 6,100 to 6,300 CNY/ton for the naphthalene-based method and from 6,300 to 6,400 CNY/ton for the benzene-based method. In August, PA equipment operating rates decreased, with enterprises running at 60% capacity, leading to reduced PA supply. With reduced supply and recovering demand, coupled with declining costs, PA prices have fluctuated downwards this week.

Demand Side: Downstream production starts declining, DOP prices fluctuate and fall.

This week, many DOP plants in China that were previously shut down have resumed normal operations, leading to a slight increase in the operating rate of DOP enterprises, with the operating load increasing by 3%. According to the commodity market analysis system, as of August 8th, the price of DOP was 7,834.16 CNY/ton, a fluctuating decrease from the price of 7,955.83 CNY/ton on August 1st, a price decrease of 1.53%. This week, the increase in DOP production has led to an increase in the output of plasticizers, and the demand for phthalic anhydride has improved, providing greater support for the rise in the price of phthalic anhydride.

Future Market Forecast

Phthalic anhydride product data analysts believe that in terms of demand, the operating rates of plasticizer enterprises in China have increased, leading to higher plasticizer production and a recovery in phthalic anhydride demand. On the supply side, the operating load of phthalic anhydride equipment in Chinese enterprises has decreased, resulting in a reduction in phthalic anhydride supply. In terms of cost, the price of ortho-xylene has dropped, leading to a decrease in the cost of phthalic anhydride. Looking ahead, with a reduction in phthalic anhydride supply and a recovery in demand, coupled with lower costs, it is expected that the price of phthalic anhydride will fluctuate and decline.